Jack Dorsey is putting $5 million behind Andrew Yang's vision for direct cash assistance, funding 20,000 microgrants at a moment when millions of Americans are still grappling with the economic fallout of the pandemic.
Twitter and Square CEO Jack Dorsey is donating $5 million to Andrew Yang's Humanity Forward nonprofit, the former presidential candidate announced on Thursday, to provide 20,000 microgrants of $250 through the nonprofit's direct cash assistance program. The donation is one of the largest single contributions to the organization since its founding and signals growing private-sector interest in universal basic income as a policy framework.
"Not only will Jack's donation directly impact tens of thousands of people in need during the current economic downturn, it will help Humanity Forward and our movement continue to make a case for Universal Basic Income (UBI) in the United States," Yang said in a statement. The announcement came during a conversation on the Yang Speaks podcast, where the two discussed the urgent need for cash relief and the broader argument for guaranteed income.
The money will be administered through Humanity Forward's Coronavirus Relief Fund, which, while it doesn't target areas specifically based on coronavirus cases, provides one-time cash payments to low-income workers most likely to be affected by the virus's impact on the economy. The fund operates on a straightforward premise: get money into people's hands quickly, without bureaucratic delays or restrictions on how it gets spent. Recipients apply through the organization's platform, and grants are distributed directly to bank accounts or prepaid debit cards.
Yang launched Humanity Forward in March after ending his run for the presidency to focus on policies for a more "human-centered America." In addition to activating new voters, the organization aimed to provide resources to political candidates who support a universal basic income (UBI), an idea that was the centerpiece of Yang's campaign platform. The campaign envisioned a "Freedom Dividend" of $1,000 paid monthly to working-age Americans and funded by a sales tax. What started as a fringe policy proposal during the Democratic primary gradually gained traction among economists, tech leaders, and local governments experimenting with pilot programs across the country.
Dorsey's donation comes via his Start Small fund, which he launched by donating $1 billion of his equity in Square. The fund is initially targeted at relief from the ongoing COVID-19 crisis. Once the pandemic has abated, Dorsey said he also plans to fund education for girls and UBI through Start Small. The organization logs donations in a publicly available spreadsheet, a move toward transparency that Dorsey has emphasized as central to the fund's mission. Every transaction, from large institutional grants to smaller community distributions, is recorded there for anyone to inspect.
Dorsey, who donated to Yang's primary campaign, appeared on Yang's podcast to announce the donation, telling listeners that UBI would grow more important as more industries turn to automation. "UBI to me represents a floor," Dorsey said on the podcast. "A floor that people can stand on, and have the knowledge and peace of mind that they could survive and eat and feed their children while they are learning how to transition into this new world." His comments reflect a growing consensus among tech executives that automation and artificial intelligence will displace millions of workers in the coming decades, making some form of guaranteed income not just desirable but necessary.
The partnership between Dorsey and Yang also highlights an emerging alliance between Silicon Valley leaders and political advocates who see direct cash transfers as a more efficient alternative to traditional welfare programs. Rather than means-tested benefits administered through complex government agencies, UBI proponents argue that unconditional cash gives recipients the autonomy to address their own needs, whether that means covering rent, buying groceries, or investing in retraining for a new career.
For Humanity Forward, the influx of capital from Start Small provides both immediate relief and political momentum. The organization has already distributed millions in direct cash assistance since its launch, and Dorsey's contribution will significantly expand its reach at a time when federal stimulus programs remain uncertain. As debates over the future of work and economic security continue to intensify, the collaboration between two of tech's most prominent figures offers a preview of how private funding may shape the universal basic income movement going forward.
